Key Difference Between Dissolving A Company & Liquidating A Company

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Key Difference Between Dissolving A Company & Liquidating A Company

When you’re looking to close your company, you may wonder exactly how you’re going to do this. It’s important to know your options and what might apply to you. That includes knowing the difference between a company dissolution and office liquidation.

The main difference to know is that dissolving a company will often be a voluntary closure of a company whereas liquidation is the process of selling off assets in order to pay creditors. Let’s take a look in more detail.

Dissolving A Company

A company can and may be dissolved when it is no longer needed. This can happen for a number of reasons, including the owner retiring or it not operating anymore. A company dissolution takes place to shut down the business and let the tax authorities know that no tax is due to be paid.

A company will have to check off certain requirements to do this, such as not owing creditors, but this is often a good way to shut the company in a positive light.

Liquidating A Company

On the other hand, liquidating a company happens when assets need to be sold off in order to pay off creditors. The difference here is that this is usually not voluntary – it’s done out of necessity.

Office liquidation often involves selling off assets in the office space in order to hand them back to the owner. This process of office decommissioning allows it to be left in good order so as not to face any legal issues with the landlord.

Are you in the process of office liquidation? Would you like some help to execute this quickly, professionally, and in the best manner? Reach out today! Our team of experts will handle your liquidation efficiently and at a competitive rate.

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